Most people ignore their Medigap plan

People treat Medicare supplement plans like landlines: sign up once at 65 and never think about them again. This costs hundreds of dollars yearly without them noticing.

Identical plans, wildly different prices

All Medigap plans are federally standardized. A Plan G from one company covers exactly the same things as a Plan G from any other company. The only difference is price, which often varies by $100 or more monthly.

“A Plan G from one insurance company covers exactly the same things as a Plan G from every other insurance company selling in your state.”

Loyal customers pay the most

Insurance companies price competitively to attract new customers, then raise rates gradually in years two, three and four. Loyal customers end up paying the most for identical benefits by not shopping around.

Carol's eight year price creep

Carol enrolled in a Plan G at 65 for 150 dollars monthly and never revisited it. Eight years later, she was paying 310 dollars monthly for the same coverage that a different company was selling to new customers for 165 dollars.

The six-month enrollment window matters

When you first become eligible for Medicare, you get a six-month Medigap open enrollment window where you can buy any plan from any company regardless of your health. Once it closes, switching requires health questions.

Health changes limit your options

After your open enrollment window closes, you may be charged more or declined for switching plans depending on your health answers. Some states have "birthday rule" laws requiring little underwriting, but rules vary by state.

Shop while you're still healthy

The money to save exists every year you wait, but the ability to switch isn't guaranteed. The right time to compare pricing is now, while you still qualify for whichever plan turns out to be the better deal.

Part D isn't standardized

If you choose a Medicare supplement, prescription drug coverage isn't included. You need a separate Part D plan, and unlike Medigap, these plans aren't standardized. Premiums, deductibles and covered medications vary significantly.

Review Part D every single year

Part D plans change annually even if you don't. Review your coverage during the annual enrollment window from October 15 through December 7, not every few years.

Skipping Part D triggers a penalty

Even people not currently taking medications should enroll in Part D. Going without it, if you don't have other qualifying drug coverage, triggers a penalty that gets added to your premium for as long as you're on Medicare.

Your action plan this fall

Pull your current Medigap premium and compare it against current rates for the same plan from other carriers in your state. Do this while you're healthy. Mark October 15 through December 7 to review Part D annually.

Medicare isn't a one-time decision

Your health changes, insurance pricing changes, and the marketplace shifts every year. Reviewing coverage every two to four years and Part D annually can mean meaningful savings without giving up any benefits.